Montpelier, as the Capital of Vermont, acts as home to the State legislature and the Governor, but also to a wide array of administrative and regulatory agencies. The State of Vermont is one of the single largest employers in the City of Montpelier, employing 2,367 individuals and paying total wages of $63,118,209. Those individuals employed by the State constitute 28% of the city's total work force, and 30% of the all wages paid. Although the current trend in State government is to downsize many agencies and reduce overall staffing levels, this remains an area where the city has seen growth in overall numbers of individuals employed.
Since 1990 the number of individuals employed by the state in Montpelier has increased by 1.9%, from 2322 to 2367 in 1994. Generally, the positions held by State workers, are relatively high paying jobs. According to the Department of Employment and Training statistics for 1994 the average wage paid to State employees was $26,663. This is on average $1,000 greater than the average total wage paid in the City, and $2,377 greater than average wages paid by private sector entities.
As the seat of State government, Montpelier is also host to a number of Federal offices and agencies, among these Vermont's Congressional field offices, the Internal Revenue Service, and the Small business Administration. In 1994 the Federal government employed 156 individuals in Montpelier, paying $5,901,368 in total annual wages. This constituted approximately 2% of the total work force, and 3% of total wages. The number of federal employees in Montpelier has remained substantially unchanged since 1990.
Federal jobs on the whole offered individuals high quality jobs. Department of Employment and Training statistics reflect that federal jobs paid $37,951 on average, a sum $12,844 greater than the overall average wage, and $13,665 greater than average private sector wages. Wages in this sector increased by 20% between 1990 and 1994, from 31,674 to $37,951.
A Regional Center
While the presence of state government is extremely important to Montpelier's economy, private sector employment is also exceedingly important to the economic health of the community, providing the lions share of positions. According to 1994 department of Employment and Training figures, total private sector employment was 5,516 and accounted for $133,968,246 in total wages. This constituted 65% of total employment and 63% of total wages.
Of the components of private sector employment the three largest are Retail Trade (12%), Finance, Insurance and Real Estate (18%), and services (25%). Average wages for Retail Trade were $14,059, $11,048 less than the average wage for the city. Average wages for Finance, Insurance and Real Estate were $36,325, $11,218 greater than the overall average for the city. Average wages for services were $20,869, $4,238 less than overall average wages.
Both the number of individuals employed and salaries have generally been on the increase in these sectors, since 1990. Service positions increased by 11.6% between 1990 and 1994, from 1883 to 2102; Retail Trade, by 10.4% from 991 to 1094; and Insurance and Real Estate decreased by 2%, from 1559 to 1533. Wages, overall, have increased in all of the foregoing sectors. Real Estate wages rose by 13% between 1990 and 1994, from $32,046 to $36,325. Wages in retail trade rose by 8%, from $13,007 to $14,059. In the service sector, wages rose by 11%, from $18,854 to $20,869.
Those sectors that are prime indicators of housing starts and development, manufacturing and construction, comprise a relatively small portion of Montpelier's economy, and remained stagnant or declined between 1990 and 1994. Manufacturing based industry generated 262 positions in 1994, paying approximately $5,851,883 in wages. This constituted a 1% decline from the 265 individuals employed in 1990, and the $5,618,363 in wages paid. While total manufacturing wages have declined, the average wage increased by 5% from $21,242 to $22,314.
Construction has declined far more precipitously than manufacturing. In 1990 contract construction employed 136 workers and paid $3,112,923 in total wages. By 1994, construction employed only 84 individuals and accounted for $1,754,560 in total wages, a decline of 39%. Furthermore, unlike manufacturing, construction saw a concurrent decline in the average wages paid, which decreased by 8%, from $22,585 in 1991 to $20,846 in 1994.
Retail Economic Growth
Any economic development strategy should reinforce the most robust economic sectors while searching for ways to expand those that are lagging. Clearly, those areas that are faring the best are financial and insurance services, service industries, and retail trade. Of these areas of growth, the one where the city has focused the most attention is on retail trade and the city's merchant district.
While retail trade grew by 10.4% from 1990 to 1994, it is an economic sector that is still beleaguered by other regional forces, primarily competition from the Berlin Mall, Barre Montpelier Road, and Burlington.
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